Regulator places Sizwe Hosmed Medical Scheme under statutory management
By joint agreement, the Council for Medical Schemes (CMS) has placed the Sizwe-Hosmed Medical
Scheme under statutory management, in terms of Section 5A of the Financial Institutions (Protection of
Funds) Act 28 of 2001 (“FI Act”) Protection of Funds Act.
The agreement by the Board of Trustees and CMS to place the Scheme under statutory management is
to enable the two parties to work together to stabilise the Scheme, ensure its sustainability and protect
the interests of Sizwe Hosmed beneficiaries.
In 2021, Sizwe Medical Fund and Hosmed Medical Scheme merged resulting in the Scheme amassing
combined reserves of R1.4 billion and a solvency level of 49.4%. However, the Scheme’s performance
has continued to deteriorate i.e., the deterioration of financial reserves due to several reasons including
benefit under- pricing and historically unreliable budgetary and forecasting processes.
Both parties agree that the Scheme has a solid and good member profile, many of whom are young.
